11:42 AM EST, 11/07/2024 (MT Newswires) -- Geron ( GERN ) said Thursday it secured up to $375 million in synthetic royalty and debt financings with Royalty Pharma ( RPRX ) and investment funds managed by Pharmakon Advisors.

The company said $250 million in cash was provided at closing, with another $125 million in debt available.

Royalty Pharma ( RPRX ) has provided $125 million at closing and will receive tiered royalty payments on US net sales of Geron's ( GERN ) Rytelo treatment of low- to intermediate-1 risk myelodysplastic syndromes with transfusion-dependent anemia.

Geron ( GERN ) said investment funds managed by Pharmakon have committed to a five-year senior secured term loan of up to $250 million, with a first tranche of $125 million drawn at closing.

The company used part of the proceeds to fully repay amounts owned under its existing loan with Hercules Capital and Silicon Valley Bank.

Geron ( GERN ) can draw a second tranche of $75 million and a third tranche of $50 million, if requested, before Dec. 31, 2025, the company said.

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